ALROSA gets 8.5 bln rbl guaranty from VTB Bank for subsidy

MOSCOW, Mar 29 (PRIME) -- Russian uncut diamond mining giant ALROSA has received an 8.5 billion ruble banking guarantee from the country’s second largest bank VTB running until the end of 2020 for a subsidy to develop the Verkhne-Munskoye diamond field in the republic of Yakutia, the company said in a statement on Thursday.

ALROSA is to receive the first, 1.3 billion ruble tranche of the subsidy very soon. The company needs the guarantee to construct a technological driveway for development of the field.

The Far East Development Ministry acts as a beneficiary of the banking guarantee.

“We’ve signed an agreement with the ministry, under which the company is to receive the first 1.3 billion ruble tranche in a few coming days. Until the end of the year, the company will receive a compensation of 3.5 billion rubles spent on construction of the driveway. The remaining 5 billion rubles will be paid in the next two years,” the company cited Deputy CEO Alexei Fillipovsky as saying.

Diamond reserves of the Verkhne-Munskoye field stand at 38.3 million carats. The ministry and the company signed an investment agreement for development of the field in 2016 with the combined investment of 62.98 billion rubles, of which the government was to provide 8.5 billion rubles in infrastructural support.

(57.5598 rubles – U.S. $1)

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